Many of Australia's top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.
Three buy ratings that have caught my eye are summarised below. Here's why brokers think these ASX shares are in the buy zone:
Flight Centre Travel Group Ltd (ASX: FLT)
According to a note out of Citi, its analysts have retained their buy rating and $49.20 price target on this travel agent giant's shares. The broker believes that Flight Centre is on course to deliver on its profit guidance in FY 2019. In addition to this, Citi has suggested that the company could increase its profitability in the future if it consolidates its store network. Though, it is worth noting that Flight Centre has responded to this suggestion and advised that it has no plans to close stores. I agree with Citi on its buy rating and feel Flight Centre is trading at an attractive level at the moment.
Megaport Ltd (ASX: MP1)
Analysts at UBS have retained their buy rating and lifted the price target on this growing tech company's shares by ~38% to $8.65 following the release of its latest update. On Tuesday the elasticity connectivity and network services company reported a 22% increase in total revenue for the fourth quarter and a 78% increase for the full year. UBS appeared to be very impressed with this performance and its long term growth potential. I agree with UBS and feel that Megaport is one of the best mid cap tech shares on the market right now.
ResMed Inc. (ASX: RMD)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating and $18.45 price target on this medical device company's shares ahead of its full year results release. According to the note, the broker expects ResMed to post a 15% increase in revenue and an 8% lift in earnings before interest and tax. Looking ahead, the broker appears confident that ResMed will continue to win market share next year. I think Credit Suisse is spot on and would also class its shares as a buy.
